SpaceX Reportedly Wants to Borrow $40 Billion for Nvidia Chips Despite a $100 Billion Cash Pile
Why would the rocket and AI giant add more debt with so much money in the bank?
Overview
SpaceX (NASDAQ:SPCX) ended June with $100 billion in cash, cash equivalents, and marketable securities, mostly from its $86 billion initial public offering (IPO) the same month. But the company now reportedly wants to borrow another $40 billion.
The rocket and artificial intelligence (AI) company is lining up around $10 billion in bank loans and $30 billion in investment-grade bonds to buy chips from Nvidia, according to a report on Tuesday. Asset manager Apollo Global Management is expected to lead the deal, which should close in 2027.
Details
SpaceX already had about $39.5 billion in debt and finance leases at the end of June. Shares were down about 2% on Wednesday, near $168 as I write.
Source
Originally published at www.fool.com.